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Seven West rises on inaugural profit

Seven West Media says its media businesses have continued to gain advertising market share in a difficult economic environment and are well-placed for the next 12 months.

Seven West shares rose in early trading, adding as much as 12 cents, or 3.4 per cent, to $3.65.

The television and publishing group controlled by billionaire Kerry Stokes resulted from the merger of West Australian Newspapers Holdings and Seven Media Group in April 2011.

Releasing its first-half accounts today, the company said net profit for the first half of 2011/12 was $163 million, up from $50.1 million in the prior corresponding period.

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However, Seven West said earnings comparisons with the prior corresponding half were difficult due to the acquisition.

On a pro-forma basis, which includes six months of trading of both West Australian Newspapers and Seven Media Group, earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $340.8 million, from $364.5 million, Seven West said.

Seven West chief executive and managing director David Leckie said the company had market-leading businesses.

"Our objective over the coming 12 months is to build on this leadership," Mr Leckie said in a statement.

"The advertising market continues to pose challenges but we are building revenue share, driving home our market leadership and maintaining vigilance on cost management.

"We are confident and we are well-placed for the coming 12 months."

Seven West said first-half earnings before interest and tax (EBIT) was $309.7 million.

In guidance issued at November’s annual general meeting, Seven West chairman Kerry Stokes said he expected first-half EBIT to be more than $300 million.

‘‘The company delivered at the high end of its market guidance for EBIT issued in November 2011,’’ Seven West said today.

Seven West’s assets included free-to-air broadcaster Seven Network, publisher Pacific Magazines, Yahoo!7, The West Australian newspaper as well as reginonal WA mastheads and radio stations.

It was Australia’s largest media company.

Seven, which holds the free-to-air rights to the Australian Football League (AFL) for the 2012-16 seasons, said costs had risen 1.2 per cent over the past six months.

‘‘Seven’s cost growth in the second half of the current financial year will reflect the first year of the new AFL agreement,’’ Seven West said in a statement.

Seven West declared an interim dividend of 19 cents per share, fully franked.